Retail sales and earnings came in strong this week, raising concerns that consumers are spending despite rising prices, risking even higher inflation. Next week, we’ll find out if those higher prices continued to weigh on consumers with the University of Michigan’s final reading of its Consumer Sentiment Index (MCSI) for November, which fell to a 10-year low earlier this month.
The week will be a short one packed with more retail and tech earnings, as well as a slew of key economic data releases ahead of Thanksgiving holiday closures in the U.S. on Thursday. The markets will also close early on Black Friday, and companies will be watching sales for an early preview of the holiday shopping season, which runs from Black Friday through the end of December, and typically accounts for just under a fifth of U.S. total annual retail sales.
The next chair of the Federal Reserve could be decided by next week.
The University of Michigan will release its final reading of its Consumer Sentiment Index (MCSI) for November on Wednesday.
The U.S. Census Bureau releases its report on durable goods orders for the month of October on Wednesday.
We’ll also get an update on personal spending and income in the U.S. for the month of October, and the Personal Consumption Expenditures Price Index.
Here are the returns for major asset classes and Bitcoin year-to-date:
Monday November 22:
Zoom Video Communications (ZM), Agilent (A), Keysight (KEYS), and Zhihu (ZH) report earnings.
U.S. Existing Home Sales (October)
EA Consumer Confidence Flash Index (November)
Tuesday November 23:
Analog Devices (ADI), Medtronic (MDT), Autodesk (ADSK), Dell Technologies (DELL), XPeng (XPEV), HP (HPQ), Best Buy (BBY), Dollar Tree (DLTR), J.M. Smucker (SJM), Dick’s Sporting Goods (DKS), and Gap (GPS) report earnings.
U.S. Markit Manufacturing and Services Flash PMI (November)
EA Markit Manufacturing and Services PMI (November)
Wednesday November 24:
Deere & Company (DE) and Futu Holdings (FUTU) report earnings.
U.S. Durable Goods Orders (October)
U.S. Wholesale Inventories, Advance (October)
U.S. GDP Growth, Second Estimate (Q3)
U.S. New Home Sales (October)
U.S. Personal spending and income (October)
U.S. PCE Price Index (October)
Michigan Consumer Sentiment Index, Final (November)
FOMC Meeting Minutes
Thursday November 25:
U.S. Markets closed for Thanksgiving holiday.
Friday November 26:
U.S. Markets close early.
Black Friday in the U.S.
Kanzhun (BZ) reports earnings.
EA Loans to Companies and Households (October)
The U.S. Census Bureau will release its report on durable goods orders for the month of October on Wednesday. Despite ongoing supply chain disruptions, durable goods orders, which include home appliances, computers, and cars among other items, are expected to have risen in October after falling less than anticipated by 0.4% in September. Transportation equipment has held the measure back, as orders for nondefense capital goods excluding aircrafts, or core capital goods, climbed 0.8%.
Personal Spending and Income
On Wednesday, we’ll also get an update on personal spending and income in the U.S. for the month of October, as well as the Personal Consumption Expenditures (PCE) Price Index from the Bureau of Economic Analysis. The PCE index is expected to rise again by 0.6% after a 0.3% increase in September and 4.4% year-over-year, and is typically used by the Fed as another gauge of inflation.
Fed Chair Decision
The next chair of the Federal Reserve could be decided by next week. President Joe Biden has interviewed both current chair Jerome Powell and Lael Brainard for the position. Compared to Powell, Brainard is considered slightly more dovish among Fed Officials and is said to favor waiting longer to wind down the Fed’s bond-buying stimulus program. On Wednesday, the Fed will also release minutes from the two-day FOMC meeting earlier this month.